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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39155
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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can the city of dallas,tx sue me for repairs on a commercial

Customer Question

can the city of dallas,tx sue me for repairs on a commercial building I own if I am in chapter 13
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 4 years ago.

The city can avoid the bankruptcy stay, if its actions are taken pursuant to the government's police powers. Bankruptcy courts have determined, in general, that governmental action against a debtor is lawful unless the principal purpose of the government action is to control the property of the bankruptcy estate for a pecuniary purpose, rather than for a health and safety -- or for some other regulatory purpose.

I don't know enough about your individual circumstances to be able to determine if the city's actions are valid. However, if you believe that the city is using its police powers as a means of effectively taking your property without paying just compensation, then you could sue for damages under Bankr. Code 362(h).

Please let me know if my answer is helpful, and if I can provide further assistance. And, thanks for using!